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Becoming ill is never fun while you’re travelling, especially if you contract a virus like COVID-19, which could potentially disrupt or put a stop to your holiday altogether. Fortunately, travel insurance can provide financial cover if you suffer from COVID-19 related illness while abroad.
Does travel insurance cover COVID-19?
Generally, most travel insurance policies provide some level of COVID-19 coverage, but the details can vary significantly between different providers and their policies. It’s important to note that most providers will require you to be diagnosed by a licensed medical professional and provide proof of a positive COVID-19 test result and other relevant documentation when making a claim.
Common things that travel insurance with COVID-19 coverage will cover for are:
- Medical expenses: Even the most basic travel insurance policies will provide some sort of coverage for overseas medical expenses. If you require medical assistance when you contract COVID-19, your travel insurance policy may cover hospital stays, testing and even quarantine-related medical costs.
- Trip cancellation/interruption: Some policies provide cover for non-refundable trip expenses in the event that you need to cancel or cut short your trip, cancel activities or bookings or face delays as a result of a positive COVD-19 test. This may also cover the costs of an early return home due to COVID-19.
- Quarantine costs: While no longer mandatory in most countries, you may be required to quarantine if you contract COVID-19 in some circumstances, for example while onboard a cruise ship. This will depend on the regulations of the country you’re visiting and the policies of your cruise liner. Your travel insurance may cover the cost of this quarantine.
Each provider and policy is different, so it’s important to read the Product Disclosure Statement (PDS) and Target Market Determination (TMD), as well as other relevant documentation before making a purchase. You can also speak to the provider and ask for specific details on their policies’ COVID-19 coverage, like what’s included, what’s excluded and what limits it has when making a claim.
Do you need travel insurance for COVID-19?
This will ultimately depend on your needs and situation, but the Australian Government’s Smartraveller website strongly suggests taking out a travel insurance policy before you leave the country. This is due to the fact that the Australian Government won’t cover any of your overseas medical costs, including medical evacuation. Travel insurance can often give you some peace of mind and help cover you financially in the event that you fall ill or are injured while travelling.
COVID-19 also affects people differently. Those with existing health and respiratory issues may struggle more than others if they contract COVID-19. This could potentially leave you with significant out of pocket costs if you were to be hospitalised. Even some of the more basic travel insurance policies may cover your medical costs in the event that this occurs. If you do have pre-existing medical conditions, you should inform your provider of them, to make sure they’re covered in your policy.
Are there exclusions and limitations around COVID-19 cover?
Exclusions and limitations are common for travel insurance policies. It’s important to note that not all travel insurance policies will cover you for COVID-19 related expenses. For those that do, common exclusions can be:
- Claims relating to COVID-19 when proof of a positive test result and diagnosis by a qualified medical professional aren’t provided.
- If you have pre-existing medical conditions that have not been disclosed to your insurance provider.
- If your trip is cancelled or cut short due to a government body or local health authority closing its borders or imposing other travel restrictions.
- If you’re diagnosed with COVID-19 before purchasing your policy. There may also be set waiting times related to this e.g. within 72 hours of purchasing the policy.
- If your policy specifically excludes all pandemics and epidemics without COVID-19 exceptions.
- Claims for mandatory arrival quarantine programs, both domestically and overseas, whether the quarantine is made mandatory prior to your departure or whilst on your trip.
- If your trip is cancelled or disrupted due to being deemed a close contact of someone who has been diagnosed with COVID-19 or someone you’re travelling with is diagnosed with COVID-19 (unless that person is named on your policy).
- Generally there’s no cover for travel to countries with a travel advisory risk rating of ‘Do Not Travel’, as stated by Smartraveller or the Australian Government’s Department of Foreign Affairs and Trade.
Does COVID-19 cover have limits and sub-limits?
Limits and sub-limits are also common when it comes to travel insurance policies. These determine how much you can be reimbursed for, in the event that you need to make a claim. Your policy’s limits will be determined by your provider and the level of cover you purchase. If you want the peace of mind of higher limits relating to COVID-19 expenses, you could consider a comprehensive travel insurance policy. The full details of what is included, excluded and what the limits and sub-limits are for your policy can be found in its PDS.
Related: Travel insurance exclusions – what aren’t you covered for?
Do I need COVID-19 cover on international cruises?
Due to the infectious nature of COVID-19, travellers on cruises are often more likely to be affected. This is due to cruise trips involving large groups of people residing in close quarters, and this as well as the risk of other contagious diseases is one main reason why people often purchase travel insurance when going on an international cruise. If you’re planning on travelling on a cruise ship, it’s important to check whether the cruise line has any travel insurance, vaccination, COVID-19 testing or quarantine requirements. It’s also important to note that some insurance providers may not offer COVID-19 cover for multi-night cruises. It’s worth checking the policy’s PDS and TMD before purchasing to see if your trip will be covered.
What can I do if my policy won’t cover me for COVID-19?
In cases where your travel insurance policy won’t cover you for COVID-19, you should consider your personal needs and situation before travelling. If, for example, you have a pre-existing or chronic medical condition that increases your risk of severe illness if you were to contract coronavirus, you should strongly consider the need to travel.
It’s important to remember that the Australian Government won’t cover your medical, quarantine or accommodation expenses resulting from COVID-19. If you cannot afford unexpected expenses while abroad, you should consider if you can afford to travel.
If you decide to travel without COVID-19 coverage, you can take precautions such as wearing a mask in crowded and public settings, being up to date with relevant vaccinations and following public health and safety orders. You could also consider cancelling your original policy and asking for a partial or full refund, then purchasing a new travel insurance policy that does cover you for COVID-19 related expenses.
Can I still travel if I’m not vaccinated against COVID-19?
The Australian Government does not require you to be vaccinated against COVID-19 in order to travel within Australia or overseas. That being said, it does strongly advise being up to date with relevant vaccinations if you plan on travelling. You should also check the vaccination requirements and other health regulations for your destination country before departing. This information can be found on the Smartraveller website or with local health authorities.
Cover image source: Artem Pachkovskyi/Shutterstock.com
